Hero buys 49% stake in EBR

[oVTo]

The Wall Street Journal reported that Hero MotoCorp, Ltd., has bought a 49.2% stake in Erik Buell Racing. Hero sold almost 6 million bikes & scooters last year, and plans to sell 20,000 EBR bikes by 2017. It looks like the money will be used to fund the development of additional models because it's not likely EBR would ever sell 20,000 1190Rs.

Will this go any better than the HD fiasco? Discuss.

[dontpanic]

From their web site: " Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight."

Certainly seems to be a better marketing strategy than selling one-dimensional, overpriced uber-cruisers to aging boomers.

[Kurlon]

Certainly seems to be a better marketing strategy than selling one-dimensional, overpriced uber-cruisers to aging boomers.

And yet, it works?

[Pittenger5]

Hopefully he was smart enough to hold a controlling stake this time.

[xxaarraa]

hmm.. EBR is a "used to be a company. sort of" and Hero is nothing more than a printing press. I don't see this relationship doing productive things.

[Pittenger5]

hmm.. EBR is a "used to be a company. sort of" and Hero is nothing more than a printing press. I don't see this relationship doing productive things.

Umm ... what? They manage to sell 6 million bikes last year, so they obviously have a distribution network somewhere, as well as facilities to make bikes.

[The Snowman]

Eric may need to do the needful and practice his Indian accent today morning.

[DaveZX6r]

Hopefully he was smart enough to hold a controlling stake this time.

Seriously.

[xxaarraa]

Umm ... what? They manage to sell 6 million bikes last year, so they obviously have a distribution network somewhere, as well as facilities to make bikes.

I guess I should elaborate huh. Hero sold 6 million bikes, but they are ALL the same 100-150 cc runabouts with different stickers. They are not known to have the least bit of interest in R&D.

I used to work in M&A - the first rule of the game is to find "synergies" in business models. Buying a rag tag racing team isn't helpful for a mass market 100cc printing press.

I can say this without sounding like a douche because I am from India. Now Bajaj taking a big stake in KTM - that is more exciting to me.

[Chippertheripper]

I hope it does go well. I have a very soft spot in my heart for those big/heavy/slow bikes.
The 9s is one of my favs. Long live the xb. (For street use only, kids)

[jwm2k3]

I guess I should elaborate huh. Hero sold 6 million bikes, but they are ALL the same 100-150 cc runabouts with different stickers. They are not known to have the least bit of interest in R&D.

I used to work in M&A - the first rule of the game is to find "synergies" in business models. Buying a rag tag racing team isn't helpful for a mass market 100cc printing press.

I can say this without sounding like a douche because I am from India. Now Bajaj taking a big stake in KTM - that is more exciting to me.

My opinion was that Hero is shit and Bajaj was awesome....product wise.

So....other than Hero iust giving EBR a ton of cash, I dont see this as remotely interesting or even helpful to Hero. Helpful to EBR? Yeah, they just got a bunch of money!

[pontifex]

Eric may need to do the needful and practice his Indian accent today morning.

You must work with Indians also They even have our US help desk saying "do the needful" now

[xxaarraa]

You must work with Indians also They even have our US help desk saying "do the needful" now

hahaha. "today morning" is a classic.